SAP targets $273.45 billion market cap in next years: CEO in memo

FILE PHOTO: SAP SE CEO Bill McDermott attends the company's annual results press conference in Walldorf, Germany, January 24, 2017. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) - SAP SAPG.DE targets a 300-percent increase of its share price in the next few years and a market capitalization of more than 250 billion euros ($273.45 billion), Chief Executive Bill McDermott wrote in an internal e-mail seen by Reuters.

The memo comes after leading shareholder advisors called on SAP investors to oppose the supervisory board of Europe’s largest technology company in a dispute over management pay.

Institutional Shareholder Services (ISS) took issue with the supervisory board’s unwillingness to acknowledge any need to improve its remuneration system despite shareholder dissent.

The payout to Bill McDermott of 15.6 million euros for 2016 ranks at the top end of German corporate pay, but does not stand out alongside SAP’s main U.S. competitors.

“I don’t expect everyone will agree on an emotional topic like stock-based compensation,” McDermott told SAP’s workers in the internal e-mail, adding that one of the targets of SAP’s executive board is to raise its share price by 300 percent.

“If we deliver on these goals, SAP will have a market capitalization of more than 250 billion euros.”

SAP's current market value stands at about 115 billion euros. It is already the most valuable company in the German blue chips index .GDAXI.

Reporting by Harro ten Wolde; Editing by Christoph Steitz